Understanding the details of real estate commissions is important when buying or selling a home in Kentuckyas it plays a major role in shaping your budget and influencing negotiations. In 2024, commission updates Buildings across the country have improved transparency, giving buyers and sellers a clearer understanding of these funds. These changes are designed to help you better navigate the costs associated with real estate transactions.
Even if you are a first time home buyer or a seasoned seller, this Redfin guide will walk you through the structure of the Kentucky real estate commission and what to expect in the current market.
The current state of the Kentucky housing market
Before we discuss how real estate commissions work in Kentucky, it’s important to look at the scope of the state. housing market trends and current circumstances that may affect what you do.
| Median Home Sales Price | $264,400 |
| Provision of Housing | 15,978 (+15.9% YOY) |
| Homes Selling Above List Price | 19.9% (-6 pts YoY) |
Understanding real estate commissions in Kentucky
What are real estate commissions?
Housing commissions it is money paid to agents to help them complete the building work. These fees are usually calculated as a percentage of the sales price and are paid when the agreement is signed it closes. They cover the agent’s services and expertise throughout the buying or selling process.
Who pays the commission?
Traditionally, sellers paid both of their own agent’s commission and buyer’s agent fees from the sale proceeds. However, starting August 17, 2024, the new rules will come into effect need buyers to agree in writing to their agent’s commission before starting any home tour.
While buyers can still negotiate for the seller to pay their agent’s fees during the offer process, this new law provides greater flexibility. It enables clearer negotiations on how much, if any, commission the seller will contribute to the buyer’s agent, giving both parties more control over the final deal.
Real estate commission rates in Kentucky
In Kentucky, real estate commission rates can vary depending on the details of the transaction and negotiations. While commission rates tend to follow industry norms, they are negotiable, allowing buyers and sellers to establish a fee structure that meets their needs.
Factors such as the location of the home, current market conditions, and services provided by the agent can affect the commission rate. This flexibility helps both parties to tailor payments to fit their budgets and goals. The following breakdown shows typical commission rates based on average home prices in major cities in Kentucky.
| The city | Median Home Sales Price | 1.5% Property Commission | 3% Real Estate Commission | 5% Real Estate Commission |
| Lexington | $330,000 | $4,950 | $9,900 | $16,500 |
| Louisville | $250,000 | $3,750 | $7,500 | $12,500 |
| Bowling Green | $295,900 | $4,438 | $8,877 | $14,795 |
At Redfin, our goal is to provide exceptional value to consumers. For sellers, we offer competition The listing fee starts at 1%.* For buyers, our fees vary by location but are designed to be competitive, helping your offer stand out and increasing your chances of success in the home buying process.
Can you negotiate real estate commissions in Kentucky?
Yes, you can! There are no federal laws setting commission rates in the US, so agents are generally open to negotiating their fees. Flexibility in commission rates can depend on factors such as the type of work, services required, and the agent-client relationship.
When negotiating commission rates, consider:
- The level of service provided by the agent
- Their marketing strategies
- Their experience in the local market
Sellers may have more power to negotiate lower prices if their goods are expected to sell quickly or are in high demand.
Tips for a successful conversation
- Compare multiple agents and their commission rates before making a decision.
- Discuss performance-based incentives, such as a higher commission for quick sales or a higher final sale price.
- Make the most of your property’s location if it’s in a sought-after area—agents may be flexible with their commission rates.
Kentucky real estate commission FAQs
What are the changes to the real estate commission? Two important changes have affected the way commissions are transferred: First, buyers must now agree to their agent’s fees in writing before visiting homes. Second, in many markets, agent compensation is no longer reflected in MLS listings. Read more about Housing commission changes here.
How do the changes affect consumers in Kentucky? Buyers must now sign an agreement with their agent specifying the amount of the commission before starting a home tour. Apart from this, buyers can still negotiate with sellers to get their agent’s fees as part of the offer process.
How do the changes affect Kentucky retailers? Sellers will continue to negotiate with their listing agent regarding the commission paid to the buyer’s agent, if any. Any requests or adjustments to these terms will be reviewed and negotiated.
How to find a real estate agent in Kentucky? If you’re looking to buy or sell a home, Redfin is ready to help. Access to a A Redfin agent start the process today.
How can you avoid fees? Selling a home on your own (For Sale By Owner, or FSBO) can help you avoid commission fees. However, what FSBO does requires a lot of effort, including managing marketing, organizing shows, and managing paperwork.
*Listing fees are subject to change, minimum applicable. Any buyer’s agent fees the seller chooses to cover are not included. The listing fee is increased by 1% of the purchase price if the buyer is not represented. Sell at 1% listing rate only if you shop with Redfin within 365 days of closing your Redfin listing. We’ll charge a 1.5% listing fee, and send you a check for the 0.5% difference after you buy your next home with us. Read more here.
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